How Much or What to Govern Any Governance which empowers itself, than the public is useless and defeating its own purpose, because the smaller the Governance the batter the public. There are five fundamental problems in our structure of Governance they are as follows. Our Government wishes to control each and every aspects of our life for its citizen than empower to act freely. Basic problem with this type of Governance is as soon as the freedom to act is taken away creativity of public is lost in jungle of laws rules etc. Planned control atmosphere does not work always as planned because of limitation of the people who planned it. There should be public opinion should be taken and also consider what is feasibility to govern and how much I will cost and can we afford and it is serving the majority. 1. Trust 2. Duplications 3. Overlapping 4. Accountability 5. Separation TRUST Now let us see what we mean by all above fundamentals taken one at a time. In our country Bharat (India) All our rules which are there to serve the public are based on mistrust. You as public had to prove that you are right and prove your innocence or even a simple statement. Which is fundamentally wrong ? Why anybody will make a wrong statement to Governance. If one found making a wrong statement the system should be able to quickly take a appropriate action against the person. In our system this is absent. Money spent in Transfer is useless and it does not serve public and its cost is very large in term of resources and physical and emotional toll on people who are transferred and its breed’s corruption who does these transfers. Basically each of us can work whatever we have or change the personal who can’t deliver the services. Now look at another example why any new minister comes or Governance comes they transfer hundreds of people. Question is why we all are Indians and can’t work with each other? It is simple people also don’t trust each other and if rules are robust anybody should be able to implement provided there is resolve. Hence there is a urgent need of a administrative reform commission which should look in each and every rules and laws there are some 3700+ I was told. Remember there is no sacred cows including IAS DM CEO Commissioners Governor etc. why these are not require will be covered in duplication. Public opinion is must to change the rules as it directly involves public hence their opinions and input at right time should be taken a must and sure sign of good governance. Our Many Prime Ministers had promised that budget will made public before presenting in parliament , but never done so far. In Age of computers and competent administration it should not be a problem and it should start very early not at nick of time. DUPLICATIONS Now let us talk of duplication. It is difficult for me where to start. Let me try why there is Central Public works department and state public works department, and local self Government Public works department. Do we need this three tier system only to serve one public? And cost of doing business is much different as CPWD is most costly and last one was least costly why as public we have live with this. These three agencies can never work in cooperation with each other, otherwise we don’t have to live with three time road digging for different times and inconvenience. Now come to city level we have Mayor of city elected by residents but still have DM CEO Commissioner, and have more power just because they are selected and appointed? It is a biggest joke of democracy in India. I one time asked this question during All India DM’s meeting in 2005 why we need them nobody could give answer nor I could find the same system any democratic or dictatorial type of Governance in world over. So we certainly don’t need in our India. That is why we immediately need a administrative reform Commission headed by public not IAS or representatives (MP , MLA) They all are over worked who finds difficult to even go to their own sessions. We may not be require so called expert and intelligent just after passing an exam and training of few months and expert in all fields be it agriculture, engineering or costing judiciary etc. remember these are not cheap any more each one pay and benefits cost very dearly say in lakhs of rupees per month. So very serious thought is requires to think a fresh for this type of duplications. We have banks and traders to control for a free market every one Below Poverty Line be given money in their bank accounts each month rather than supply the fixed amount and price rice wheat and sugar kerosene etc. Why have two tier system of pricing of same thing in one country, but poor should be protected and supported all the time. The rationing system is rotten and corrupt to the core and every ody can tell you horror stories. Ration cards are made for the illegal person for want of vote bank. Let us see how funny it looks we have highest paid public servant Presidents in center and Governors in States who do nothing and in their name PM or CM takes care of Administration. Bhayya a man Can’t do his own job (One man One job) principle PM had to control Legislations and as well Administration and President do nothing. Is it fair for public funds. Will you pay two people for one a job as your personal job to be complete. Hence need a Administration Reform Commission As soon as possible. Why public had to pay two pay checks for one and same job. It is not very effective way to spend public money. Let us talk in details about the situation of Governors. Why they are there as mere monitors of central Government in various states. There are two or little more that in big mansions left behind the governors place left behind by masters British. They still live same way some few hundred people with a budget of few corers a month in salary and perks like free food and pay and most of these are retired IAS or part people a rewards. Everyone knows we don’t need them but who wants to say because one day I may get such a perk like Governor of states a public expanses. Same thins can be said for DM CEO or Commissioner of City But who will Talk against IAS it will be killing the chance of my own son or daughter not be an IAS officer one day in future, who knows may be they could be another Einstein or Columbus instead of an mere IAS . IAS and IPS both are selected out of best of Indian boys and Girls but why they are not allowed to work independent of each other one maintaining law and other peace and security of public? Public will not shed a tear not democracy will be undermine as they are appointed not elected and they have no daily contact with general public some handful see them everyday it comes in local papers even our name came one time when I see one governor with my family. These are reward post for faithful to party not to public. Accountability If you have three tier system and two people doing the same job one in name other actually doing through chain of ten commands to control a small job or a big job will be able to fixed any accountability. That is why we can not fix any accountability for an error, always there are other someone else to blame. Biggest joke is we have millions of clerk who are expected to work but no authority to dispense the lowest ordinary cases of administration and than we talk about trust. How you can feel part of a team where you have no clear cut laws and powers to dispense the cases and still feel part of team. Rules are discriminatory and not at all robust, office head can change the noting on file at his or her whims. No two cases which are similar had same outcome in our system why and how nobody seems to have answer, but is looking for answer and solution is administrative reform commission as soon as possible. but all party should be included in this not merely administrative people or representatives only specially grieved public. Governance should be as much as public can handle no more no less. There are few places where public need to be control like public safety and defense of country but not all te places but it need to be served by governance. Why Government had to have a supply department permit department, Rationing, fair pricing system, shop timings, military canteen, treasury, railway , air India, rehabilitation, power production and distribution, education and thousands of public undertakings of states and central. Our esteem business houses can’t do what Governance is doing. Answer is this question is very simple but it may not look good for no. of IAS officers. Governance job is to manage the system but required to do it make laws and implement those. Why every personnel had be in New Delhi all the time sitting in vicinity of secretary, in ministry building. With advent of computers these can be sitting in district level offices and communicate with their bosses daily as well serve the public batter. IN each ministry there are secretary and there are personal secretary to minister why? It is clear cut duplication and time wasting and wasting of public funds. Why public had to travel and waste time and money when they need the services rather than these people come to public to serve. Secretary and these staff need not be sitting next to each other on daily basis where as public need these personnel’s every day so they be close and available to public more. Separation There are three parts of Governance everybody knows, Legislation, Administration and Judicial. They must be able to work in unison and as well as separate and interdependently all the time for the benefit of public not for their own benefits pay and perks and promotion only. In our system this is not possible PM had to see all no sharing of powers. Some of the junior Ministers have no file to see but a big spacious office and staff. PM should not be in charge of Legislative functions and administration as well. Ministers should not be from legislative members. He should appoint them or work with Secretary of departments where they grow from ranks, why not? After all we are all Indians and should be able to work under a set of rules and regulations if at all we are talking about same thing – serving the public interests over our own smaller personal agendas. For efficient system of governance we need strong and robust rules and balanced budget which means within budget and tools to work independently without interference of each other. Legislation make s or amend rules and make laws. Administration apply law of land and maintain law and order. And Judiciary should see the laws are not only followed in spirit and letters but serve the public and encourages them to meet the administration for help they need time to time and within time. Judicary should see the public get justice at relatively ease and timely and it has respect of administration and legislation as well. Similarly administration also has respect of legislation and judiciary in applying laws and maintaining order with public trust and service with regards for their hard work. Legislative will have the satisfaction that the administration and judiciary are following what they are expecting to serve the public. This can all be done when there is interference to each other work but admiration only in order to serve public. And public had to be supportive whenever and wherever to all three wings of Governance. Public will only do that when it get encouragement from all three wings as the supreme and service. Public will be happy and so the three parts Governance and their personnel viz, Legislators, Administrators and Judges as they are some or other time recipients of these services as well. One thing must be clear to all of us United public will be served and divided as we are today for any issue will be ruled by the same governance system no matter what. United public for a cause becomes a revolution and this is only way WE know a revolution can be brought in By United public. United public for a cause becomes a clear cut public opinion and its will be revolution. We have to demand new things and small which can bring a big change as well in future Governance. One all public servants will move all their files to next place after their job is done. All public servants to have their own vehicles to attend to governance duty, a loan to buy vehicles may be provided. No house all will be apid the market value rent for their official homes provided. ALL MP /MLA etc pay for their safety if you fearful don’t come to serve public. Most of the representative are good to their wards and they need worry about safety. Those who are not need not be provided the security as they are them self can take care of their safety, I know what you means as already in groups and like goondas can save them self so these MLA /MP’s, and police thus spared will be able to take care of public safety. All peons will be sent back to their place of birth or a village and will be part of Planning Commission and will be paid same amount of money as pay but their job will be similar taking care of water needs cleanliness of village and how each and every family can have a house of their own also how lagan money be used to start a school in village. In office paper should be banned all over India. Let people take care of themselves like make their own tea and clean after themselves in public servants As we only keep able body person in our Governance job and this much sacrifice they should be able to do for their country. Planning commission will be more effective when planning will start from bottom most unit a village, a peon who is part of Governance, will have the rope to have funds allotted to his or her village. This all above small changes will bring a mobile change in immobile stagnant Governance system and does not need economic layout but Government will be accessible to majority of population. Argument can be brought that it will not work. Ask that question to BPL people IS present system is working ? Answer need not be given to me which is off course YES. If we go on doing what we were doing we will go on getting the same results will be getting in future but small steps will help as NGO are helping to fulfill Governance job and fulfill the dream of public Governance.

income from house property

we are expecting the DTC be implemented from 1st April 2012, we have to be familiar with the DTC provisions. In general the DTC looks and be simple but it is complicated unless otherwise if we have studied the entire provisions of the act because, things are spread out here and there and which are disconnected with relevant provisions. One must search the entire DTC to find solution. Hence it is sure that we should have consolidated view about the DTC provision before we conclude any issue with respect to this Code. Let us go through the DTC provisions for Income from house property. Only income from letting of house property shall be taxable under this head of income as per the DTC, even if the letting in the nature of trade, commerce or business. ouse property” mean (a) any building or land appurtenant thereto; along with facilities and services whether in-built or provided separately; or (b) any building along with any machinery, plant, furniture or any other facility or services whether inbuilt or provided separately; [Section 314(119).] Based on the definition we can conclude that even factories are taxable under the head house property. Certain companies may have the business of letting their factory premises for rent which are now taxable under the head Income from house property and not under business income; hence they cannot claim deduction beyond 20% of rent receivable or received (Gross rent). Letting means Property that is leased or rented out or let. It is not defined in the code but in general it has this meaning. Certain property owners are receiving lump sum amount in the name of the lease of property instead of collecting rent, and this lump sum will be repaid after the period of tenure mentioned in the agreement if any entered. How this can be considered for income from house property? On what basis and how rent shall be computed for direct tax code? Still this is remains unsolved. When a property which is taxable under this head owned by two or more persons then if their shares are definite and ascertainable shall be computed separately for each of such person in respect of his share. (What is mean by His share?). When there is a dispute then it shall be computed as AOP The following are the properties are not taxable under the head Income from house property: a. To the house property, or any portion of the house property , which is used by the person as a hospital, hotel, convention centre or cold storage; and forms part of SEZ, the income from which is computed under the head “Income from Other Sources” To a property which is not ready for use during the financial year [What is mean by “not ready for use”?]. It is up to the tax payer to prove that whether the property was ready to use during the financial year or not. More over the gross rent in respect of a house property or any part of the property shall be the amount of rent received or receivable, directly or indirectly, for the financial year or part thereof, for which such property is let out. Hence if not let out we can say that it is not subject to tax. This is benefit is not there in existing Income-tax Act, 1961. How to compute? Particulars Amount (Rs) A Rent received or receivable, directly or indirectly, for the financial year or part thereof, for which such property is let out. XXXX LESS: B The amount of taxes levied by a local authority in respect of such property, to the extent the amount is actually paid by him during the financial year. XX C A sum equal to twenty per cent(20%) of the gross rent (A) XXX D Any Interest on loan taken for the purposes of Acquisition, Construction, repair or renovation of the property or loan taken to repayment of first loan. XXX E Income/(Loss) from House Property XXXX Interest on loan which pertains to the period prior to the financial year in which the house property has been acquired or constructed shall be allowed as deduction in five equal installments beginning from such financial year. The amount of rent received in advance shall be included in the gross rent of the financial year to which the rent relates. The amount of rent received in arrears shall be deemed to be the income from house property of the financial year in which such rent is received. This arrears of rent shall be included in the total income of the person under the head income from house property, whether the person is the owner of the property in that year or not. A sum equal to twenty per cent of the arrears of rent shall be allowed as deduction towards repair and maintenance of the property. Self Occupied or Property which is/are not let out: If any property owned by the taxpayer had not let out during the financial year then he has to claim the interest on loan take for the house under section 74 (Tax incentives) and not under income from house property. The following conditions to be fulfilled to claim the same: - Individual or HUF can claim under this section 74. b. The house property is owned by the person and not let out during the financial year c. The acquisition or construction of the house property is completed within a period of three years from the end of the financial year in which the loan was taken; and d. The person obtains a certificate from the financial institution to which the interest is paid or payable on the loan. (Only loan taken from financial institutions are eligible to be claimed under this section) e. The amount of deduction under this section shall not exceed Rs.1,50,000/- Exhibit- mr x has the following six house properties out of which one of them are not ready for use as at 31.03.2013. The following are the details for the financial year 2012-13 Name of the Property Nature Gross Rent p.a. Interest on loan ** Taxes paid for the property Income/(Loss) From House Property Deduction U/s 74 Property # 1 Self Occupied Nil Rs.2,50,000 Rs.2,500 Nil Rs.1,50,000 Property # 2 Let out Rs.1,20,000 Rs.1,75,000 Rs.1,500 (Rs.80,500) Nil Property # 3 Let out Free of Rent Rs.1,85,000 Rs.3,500 Nil Nil Property # 4 Let out Rs.2,40,000* Rs.1,55,000 Rs.5,000 Rs.32,000 Nil Property # 5 Not Let out Nil Rs.1,86,000 Rs.2,000 Nil Rs.1,50,000 Property # 6 Not ready to use Nil Rs.1,98,000 Nil Nil Nil Total (Rs.48,500) Rs.3,00,000 *this tenant is not willing to pay the rent and the case is pending in court

राष्ट्र गान या गुलामी का गीत

राष्ट्र गान या गुलामी का गीत ( जन गण मन की कहानी) Posted on January 25, 2012 राष्ट्र गान या गुलामी का गीत ( जन गण मन की कहानी) सन 1911 तक भारत की राजधानी बंगाल हुआ करता था। सन 1905 में जब बंगाल विभाजन को लेकर अंग्रेजो के खिलाफ बंग-भंग आन्दोलन के विरोध में बंगाल के लोग उठ खड़े हुए तो अंग्रेजो ने अपने आपको बचाने के लिए के कलकत्ता से हटाकर राजधानी को दिल्ली ले गए और 1911में दिल्ली को राजधानी घोषित कर दिया। पूरे भारत में उस समय लोग विद्रोह से भरे हुए थे तो अंग्रेजो ने अपने इंग्लॅण्ड के राजा को भारत आमंत्रित किया ताकि लोग शांत हो जाये। इंग्लैंड का राजा जोर्ज पंचम 1911 में भारत में आया। रविंद्रनाथ टैगोर पर दबाव बनाया गया कि तुम्हे एक गीत जोर्ज पंचम के स्वागत में लिखना ही होगा। उस समय टैगोर का परिवार अंग्रेजों के काफी नजदीक हुआ करता था, उनके परिवार के बहुत से लोग ईस्ट इंडिया कंपनी के लिए काम किया करते थे, उनके बड़े भाई अवनींद्र नाथ टैगोर बहुत दिनों तक ईस्ट इंडिया कंपनी के कलकत्ता डिविजन के निदेशक (Director) रहे। उनके परिवार का बहुत पैसा ईस्ट इंडिया कंपनी में लगा हुआ था। और खुद रविन्द्र नाथ टैगोर की बहुत सहानुभूति थी अंग्रेजों के लिए। रविंद्रनाथ टैगोर ने मन से या बेमन से जो गीत लिखा उसके बोल है “जन गण मन अधिनायक जय हे भारत भाग्य विधाता”। इस गीत के सारे के सारे शब्दों में अंग्रेजी राजा जोर्ज पंचम का गुणगान है, जिसका अर्थ समझने पर पता लगेगा कि ये तो हकीक़त में ही अंग्रेजो की खुशामद में लिखा गया था। इस राष्ट्रगान का अर्थ कुछ इस तरह से होता है “भारत के नागरिक, भारत की जनता अपने मन से आपको भारत का भाग्य विधाता समझती है और मानती है। हे अधिनायक (Superhero) तुम्ही भारत के भाग्य विधाता हो। तुम्हारी जय हो ! जय हो ! जय हो ! तुम्हारे भारत आने से सभी प्रान्त पंजाब, सिंध, गुजरात, मराठा मतलब महारास्त्र, द्रविड़मतलब दक्षिण भारत, उत्कल मतलब उड़ीसा, बंगाल आदि और जितनी भी नदिया जैसे यमुना और गंगा ये सभी हर्षित है, खुश है, प्रसन्न है , तुम्हारा नाम लेकर ही हम जागते है और तुम्हारे नाम का आशीर्वाद चाहते है। तुम्हारी ही हम गाथा गाते है। हे भारत के भाग्य विधाता (सुपर हीरो ) तुम्हारी जय हो जय हो जय हो। ” जोर्ज पंचम भारत आया 1911 में और उसके स्वागत में ये गीत गाया गया। जब वो इंग्लैंड चला गया तो उसने उस जन गण मन का अंग्रेजी में अनुवाद करवाया। क्योंकि जब भारत में उसका इस गीत से स्वागत हुआ था तब उसके समझ में नहीं आया था कि ये गीत क्यों गाया गया और इसका अर्थ क्या है। जब अंग्रेजी अनुवाद उसने सुना तो वह बोला कि इतना सम्मान और इतनी खुशामद तो मेरी आज तक इंग्लॅण्ड में भी किसी ने नहीं की। वह बहुत खुश हुआ। उसने आदेश दिया कि जिसने भी ये गीत उसके (जोर्ज पंचम के) लिए लिखा है उसे इंग्लैंड बुलाया जाये। रविन्द्र नाथ टैगोर इंग्लैंड गए। जोर्ज पंचम उस समय नोबल पुरस्कार समिति का अध्यक्ष भी था। उसने रविन्द्र नाथ टैगोर को नोबल पुरस्कार से सम्मानित करने का फैसला किया। तो रविन्द्र नाथ टैगोर ने इस नोबल पुरस्कार को लेने से मना कर दिया। क्यों कि गाँधी जी ने बहुत बुरी तरह से रविन्द्रनाथ टेगोर को उनके इस गीत के लिए खूब डांटा था। टैगोर ने कहा की आप मुझे नोबल पुरस्कार देना ही चाहते हैं तो मैंने एक गीतांजलि नामक रचना लिखी है उस पर मुझे दे दो लेकिन इस गीत के नाम पर मत दो और यही प्रचारित किया जाये क़ि मुझे जो नोबेल पुरस्कार दिया गया है वो गीतांजलि नामक रचना के ऊपर दिया गया है। जोर्ज पंचम मान गया और रविन्द्र नाथ टैगोर को सन 1913 में गीतांजलि नामक रचना के ऊपर नोबल पुरस्कार दिया गया। रविन्द्र नाथ टैगोर की ये सहानुभूति ख़त्म हुई 1919 में जब जलिया वाला कांड हुआ और गाँधी जी ने लगभग गाली की भाषा में उनको पत्र लिखा और कहा क़ि अभी भी तुम्हारी आँखों से अंग्रेजियत का पर्दा नहीं उतरेगा तो कब उतरेगा,तुम अंग्रेजों के इतने चाटुकार कैसे हो गए, तुम इनके इतने समर्थक कैसे हो गए ? फिर गाँधी जी स्वयं रविन्द्र नाथ टैगोर से मिलने गए और बहुत जोर से डाटा कि अभी तक तुम अंग्रेजो की अंध भक्ति में डूबे हुए हो ? तब जाकर रविंद्रनाथ टैगोर की नीद खुली। इस काण्ड का टैगोर ने विरोध किया और नोबल पुरस्कार अंग्रेजी हुकूमत को लौटा दिया। सन 1919 से पहले जितना कुछ भी रविन्द्र नाथ टैगोर ने लिखा वो अंग्रेजी सरकार के पक्ष में था और 1919के बाद उनके लेख कुछ कुछ अंग्रेजो के खिलाफ होने लगे थे। रविन्द्र नाथ टेगोर के बहनोई, सुरेन्द्र नाथ बनर्जी लन्दन में रहते थे और ICS ऑफिसर थे। अपने बहनोई को उन्होंने एक पत्र लिखा था (ये 1919 के बाद की घटना है) । इसमें उन्होंने लिखा है कि ये गीत ‘जन गण मन’ अंग्रेजो के द्वारा मुझ पर दबाव डलवाकर लिखवाया गया है। इसके शब्दों का अर्थ अच्छा नहीं है। इस गीत को नहीं गाया जाये तो अच्छा है। लेकिन अंत में उन्होंने लिख दिया कि इस चिठ्ठी को किसी को नहीं दिखाए क्योंकि मैं इसे सिर्फ आप तक सीमित रखना चाहता हूँ लेकिन जब कभी मेरी म्रत्यु हो जाये तो सबको बता दे। 7 अगस्त 1941 को रबिन्द्र नाथ टैगोर की मृत्यु के बाद इस पत्र को सुरेन्द्र नाथ बनर्जी ने ये पत्र सार्वजनिक किया, और सारे देश को ये कहा क़ि ये जन गन मन गीत न गाया जाये। 1941 तक कांग्रेस पार्टी थोड़ी उभर चुकी थी। लेकिन वह दो खेमो में बट गई। जिसमे एक खेमे के समर्थक बाल गंगाधर तिलक थे और दुसरे खेमे में मोती लाल नेहरु थे। मतभेद था सरकार बनाने को लेकर। मोती लाल नेहरु चाहते थे कि स्वतंत्र भारत की सरकार अंग्रेजो के साथ कोई संयोजक सरकार (Coalition Government) बने। जबकि गंगाधर तिलक कहते थे कि अंग्रेजो के साथ मिलकर सरकार बनाना तो भारत के लोगों को धोखा देना है। इस मतभेद के कारण लोकमान्य तिलक कांग्रेस से निकल गए और उन्होंने गरम दल बनाया। कोंग्रेस के दो हिस्से हो गए। एक नरम दल और एक गरम दल। गरम दल के नेता थे लोकमान्य तिलक जैसे क्रन्तिकारी। वे हर जगह वन्दे मातरम गाया करते थे। और नरम दल के नेता थे मोती लाल नेहरु (यहाँ मैं स्पष्ट कर दूँ कि गांधीजी उस समय तक कांग्रेस की आजीवन सदस्यता से इस्तीफा दे चुके थे, वो किसी तरफ नहीं थे, लेकिन गाँधी जी दोनों पक्ष के लिए आदरणीय थे क्योंकि गाँधी जी देश के लोगों के आदरणीय थे)। लेकिन नरम दल वाले ज्यादातर अंग्रेजो के साथ रहते थे। उनके साथ रहना, उनको सुनना, उनकी बैठकों में शामिल होना। हर समय अंग्रेजो से समझौते में रहते थे। वन्देमातरम से अंग्रेजो को बहुत चिढ होती थी। नरम दल वाले गरम दल को चिढाने के लिए 1911 में लिखा गया गीत “जन गण मन” गाया करते थे और गरम दल वाले “वन्दे मातरम”। नरम दल वाले अंग्रेजों के समर्थक थे और अंग्रेजों को ये गीत पसंद नहीं था तो अंग्रेजों के कहने पर नरम दल वालों ने उस समय एक हवा उड़ा दी कि मुसलमानों को वन्दे मातरम नहीं गाना चाहिए क्यों कि इसमें बुतपरस्ती (मूर्ति पूजा) है। और आप जानते है कि मुसलमान मूर्ति पूजा के कट्टर विरोधी है। उस समय मुस्लिम लीग भी बन गई थी जिसके प्रमुख मोहम्मद अली जिन्ना थे। उन्होंने भी इसका विरोध करना शुरू कर दिया क्योंकि जिन्ना भी देखने भर को (उस समय तक) भारतीय थे मन,कर्म और वचन से अंग्रेज ही थे उन्होंने भी अंग्रेजों के इशारे पर ये कहना शुरू किया और मुसलमानों को वन्दे मातरम गाने से मना कर दिया। जब भारत सन 1947 में स्वतंत्र हो गया तो जवाहर लाल नेहरु ने इसमें राजनीति कर डाली। संविधान सभा की बहस चली। संविधान सभा के 319 में से 318 सांसद ऐसे थे जिन्होंने बंकिम बाबु द्वारा लिखित वन्देमातरम को राष्ट्र गान स्वीकार करने पर सहमति जताई। बस एक सांसद ने इस प्रस्ताव को नहीं माना। और उस एक सांसद का नाम था पंडित जवाहर लाल नेहरु। उनका तर्क था कि वन्दे मातरम गीत से मुसलमानों के दिल को चोट पहुचती है इसलिए इसे नहीं गाना चाहिए (दरअसल इस गीत से मुसलमानों को नहीं अंग्रेजों के दिल को चोट पहुंचती थी)। अब इस झगडे का फैसला कौन करे, तो वे पहुचे गाँधी जी के पास। गाँधी जी ने कहा कि जन गन मन के पक्ष में तो मैं भी नहीं हूँ और तुम (नेहरु ) वन्देमातरम के पक्ष में नहीं हो तो कोई तीसरा गीत तैयार किया जाये। तो महात्मा गाँधी ने तीसरा विकल्प झंडा गान के रूप में दिया “विजयी विश्व तिरंगा प्यारा झंडा ऊँचा रहे हमारा”। लेकिन नेहरु जी उस पर भी तैयार नहीं हुए। नेहरु जी का तर्क था कि झंडा गान ओर्केस्ट्रा पर नहीं बज सकता और जन गन मन ओर्केस्ट्रा पर बज सकता है। उस समय बात नहीं बनी तो नेहरु जी ने इस मुद्दे को गाँधी जी की मृत्यु तक टाले रखा और उनकी मृत्यु के बाद नेहरु जी ने जन गण मन को राष्ट्र गान घोषित कर दिया और जबरदस्ती भारतीयों पर इसे थोप दिया गया जबकि इसके जो बोल है उनका अर्थ कुछ और ही कहानी प्रस्तुत करते है,और दूसरा पक्ष नाराज न हो इसलिए वन्दे मातरम को राष्ट्रगीत बना दिया गया लेकिन कभी गया नहीं गया। नेहरु जी कोई ऐसा काम नहीं करना चाहते थे जिससे कि अंग्रेजों के दिल को चोट पहुंचे, मुसलमानों के वो इतने हिमायती कैसे हो सकते थे जिस आदमी ने पाकिस्तान बनवा दिया जब कि इस देश के मुसलमान पाकिस्तान नहीं चाहते थे,जन गण मन को इस लिए तरजीह दी गयी क्योंकि वो अंग्रेजों की भक्ति में गाया गया गीत था और वन्देमातरम इसलिए पीछे रह गया क्योंकि इस गीत से अंगेजों को दर्द होता था। बीबीसी ने एक सर्वे किया था। उसने पूरे संसार में जितने भी भारत के लोग रहते थे, उनसे पुछा कि आपको दोनों में से कौन सा गीत ज्यादा पसंद है तो 99 % लोगों ने कहा वन्देमातरम। बीबीसी के इस सर्वे से एक बात और साफ़ हुई कि दुनिया के सबसे लोकप्रिय गीतों में दुसरे नंबर पर वन्देमातरम है। कई देश है जिनके लोगों को इसके बोल समझ में नहीं आते है लेकिन वो कहते है कि इसमें जो लय है उससे एक जज्बा पैदा होता है। तो ये इतिहास है वन्दे मातरम का और जन गण मन का। अब ये आप को तय करना है कि आपको क्या गाना है ? इतने लम्बे पत्र को आपने धैर्यपूर्वक पढ़ा इसके लिए आपका धन्यवाद्। और अच्छा लगा हो तो इसे फॉरवर्ड कीजिये, आप अगर और भारतीय भाषाएँ जानते हों तो इसे उस भाषा में अनुवादित कीजिये अंग्रेजी छोड़ कर। जय हिंद |

भक्त और भगवान के गज़ब रिश्ता अछि ई युग में पूजा पाठ के बदला घर दुआर मँगे अछि कलयुग में मंदिर में घंटा बजोता बहुत जोर स देखाबा के लेल पीठ पाछु सभहक गर्दन कटे छथि ई कलयुग में भगवान के पता छैन हरिदम हम साथ नहीं देबैन धरती पर तै माय-बाप के भेजला ई कलयुग में गुमान कम नहीं होयत अछि चुटपुजिय पंडितो के कॉज होय त टाँका मुह फोली क मंगता कलयुग में भक्त और भगवान के गज़ब रिश्ता अछि ई युग में पूजा पाठ के बदला घर दुआर मँगे अछि कलयुग में

E-RETURN FOR TDS

Filling e-TDS return is compulsorily for company and government deductors as per section 206 of Income tax law. So, it is the need of time to learn how to fill e-TDS return, if you are interested to work as accountant in company or government sector. Before learning simple steps, you should know, what is e-TDS? E-TDS means electronic tax deducted at source. It is duty of above mentioned deductors to deduct the amount income tax when they pay to others and prepare return in form No.24, 26 or 27 or 24Q, 25Q or 26Q in electronic media as per prescribed data structure in either a floppy or a CD ROM. The floppy or CD ROM prepared should be accompanied by a signed verification in Form No.27A. Central Board of Direct Taxes (CBDT) has appointed National Securities Depository Ltd. (NSDL), Mumbai as e-TDS Intermediary. 5 Simple Steps for filling e- TDS Return Ist Step Choose the format or data structure for preparing e-TDS return Income tax department and NSDL have made different format according to nature of payments. So, accountant should choose any one from following format. 1. (a) Annual e-TDS return: o File Format for Form 24 o File Format for Form 26 o File Format for Form 27 (b) Annual e-TCS return: o File Format for Form 27E (c) Quarterly return: o File Format for Form 24Q o File Format for Form 26Q o File Format for Form 27Q o File Format for Form 27EQ Data structure for Form 24Q of the quarter ending 31-March 2nd Step E-TDS return for successful acceptance 1. E-TDS clean text ASCII format: You can use any software like ms excel, compu tax or Tally.ERP or NSDL’s software Return Preparation Utility (e-TDS RPU-Light) for making e-TDS return but E-TDS file formats must be in clean text ASCII format with 'txt' as filename extension. 2. Correct Tax deduction Account Number (TAN) of the Deductor is clearly mentioned in Form No.27A as also in the e-TDS return, as required by sub-section (2) of section 203A of the Income-tax Act. 3. The particulars relating to deposit of tax deducted at source in the bank are correctly and properly filled in the table at item No.6 of Form No.24 or item No.4 of Form No.26 or item No.4 of Form No.27, as the case may be. 4. The data structure of the e-TDS return is as per the structure prescribed by the e-Filing Administrator. 5. The Control Chart in Form 27A is duly filled in all columns and verified and as enclosed in paper form with the e-TDS return on computer media. 6. The Control totals of the amount paid and the tax deducted at source as mentioned at item No.4 of Form No.27A tally with the corresponding totals in the e-TDS return in Form No. 24 or Form No. 26 or Form No.27, as the case may be. 7. Bank Branch code or BSR code is a 7 digit code allotted to banks by RBI. This is different from the branch code which is used for bank drafts etc. This no. is given in the OLTAS challan or can be obtained from the bank branch or from www.tin-nsdl.com. It is mandatory to quote BST code both in challan details and deductee details. Hence, this field cannot be left blank. Government deductors transfer tax by book entry, in which case the BSR code can be left blank. 3rd Step Validate or verify your prepared e-TDS return After the file has been set as per the file format, it should be verified using the File Validation Utility(FVU) (download here ) provided by NSDL. 4th Step Rectify the errors and verify the file 5th Step Filling of e-TDS Return A ) Go to TIN – FC ( center) near to your office e-TDS returns can be filed at any of the TIN-FC opened by the e-TDS Intermediary for this purpose. Addresses of these TIN-FCs are available at the website on http://www.incometaxindia.gov.in/ or at http://www.tin-nsdl.com/ .

विवेकानंद का विश्व प्रसिद्द भाषण 11सितम्बर 1893 विश्व धर्म संसद शिकागो अमेरिका के भाइयों और बहनों, जो आपने हमारा ससम्मान स्वागत किया, इसके लिए मैं आपको धन्यवाद देता हूँ विश्व के सबसे प्राचीन संत की तरफ से. मैं आपको धन्यवाद देता हूँ सभी धर्मो की माँ की तरफ से. मैं आपको धन्यवाद देता हूँ करोड़ो विभिन्न जाती के और संप्रदाय के हिन्दुओं की तरफ से. मैं उनको भी धन्यवाद देना चाहता हूँ यहाँ उपस्थित सभी लोगों को जाये आये हैं हमें अपने देश की संस्कृति और धर्म के बारे में हमें बताने. मुझे गर्व है की मैं एक ऐसे धर्म से हूँ जिसने दुनिया को सिखाया-बताया धर्म और सर्वयापी सत्य के बारे में. हम हिन्दू न न सिर्फ सर्वव्यापी सत्य में विश्वास रखते हैं बल्कि सभिधार्मो में विशवास रखते हैं. मुझे गर्व है की में ऐसे देश की संतान हूँ जिसने विभिन्न देशो से निकले गए लोगों को न सिर्फ अपने देश शरण दी बल्कि उनको उनके धर्मो सहित गले से लगाया. मुझे गर्व है ये बताने में की जब यहूदियों को उनके मूल देश से उन्हें निकाल दिया तब दक्षिण भारत ने उनको शरण दी न सिर्फ जमीन दी बल्कि उनके पूजा स्थल भी बनवाये और उनको भी उसी तरह सम्मान दिया जैसे की अपने देव-देवियों को. जबकि रोमन आक्रान्ताओं ने न सिर्फ उनके पूजा स्थल -मंदिर तोड़ डाले बल्कि उनके धर्म ग्रन्थ भी जला दिए. मैं एक बात आपको बताना चाहता हूँ जैसे की मैं और मुझसे पहले और भी बहुत से भारत के संतो ने कहा है की जैसे अलग-२ नदियाँ एक ही सागर में आके मिलती हैं ऐसे ही सारे सीधे-तिरछे रस्ते जिन पर मानव चलता है अंत में एक ही इश्वर से जा के मिलता है. मैं गीता के माध्यम से बताना चौंगा जो की इस बात का विश्वव्यापी प्रमाण है ” जो भी मेरे पास आता है वो कोई भी हो कैसा भी हो और कहीं से भी हो, अंत में मैं उस तक पहुँच ही जाता हूँ. वो चाहे कोई भी मार्ग चुने मुझसे मिलने के लिए वो मार्ग अंत में मुझसे मिल ही जाता है” विभिन्न मान्यता वाले लोग, किसी और को न मानने वाले लोग, मानव से मानव में भेद करने वाले लोग, कट्टरता से अंधे लोग सभी एक ही प्रथ्वी के रहने वाले हैं. वे लोग जिन्होंने प्रथ्वी को मानव रक्त से लाल किया, सभ्यताएं नष्ट कर दी, पुरे के पुरे देश मिटा दिए गए, इस तरह के राक्षस दुबारा से नहीं हों इसके लिए मानव समाज को आज से बहुत आगे आना चाहिए और यही वो समय है जब हम सभी एक लक्ष्य के लिए बजे अलग-२ विचारों को दुसरो पर थोपने (तलवार या कलम से ) की बजाये,मानव से मानव के बीच के अविश्वास को धीरे-२ ख़त्म कर देना चाहिए.

सच्चा आध्यात्मिक नायक स्वामी विवेकानंद

: सच्चा आध्यात्मिक नायक स्वामी विवेकानंद: स्वामी विवेकानंद आधुनिक भारत के एक क्रांतिकारी संत हुए हैं। 12जनवरी, 1863को कलकत्ता में जन्मे इस युवा संन्यासी के बचपन का नाम नरेंद्र नाथ थ...

SWAMI VIVEKA NANDA

Swami Vivekananda, known in his pre-monastic life as Narendra Nath Datta, was born in an affluent family in Kolkata on 12 January 1863. His father, Vishwanath Datta, was a successful attorney with interests in a wide range of subjects, and his mother, Bhuvaneshwari Devi, was endowed with deep devotion, strong character and other qualities. A precocious boy, Narendra excelled in music, gymnastics and studies. By the time he graduated from Calcutta University, he had acquired a vast knowledge of different subjects, especially Western philosophy and history. Born with a yogic temperament, he used to practise meditation even from his boyhood, and was associated with Brahmo Movement for some time. With Sri Ramakrishna At the threshold of youth Narendra had to pass through a period of spiritual crisis when he was assailed by doubts about the existence of God. It was at that time he first heard about Sri Ramakrishna from one of his English professors at college. One day in November 1881, Narendra went to meet Sri Ramakrishna who was staying at the Kali Temple in Dakshineshwar. He straightaway asked the Master a question which he had put to several others but had received no satisfactory answer: “Sir, have you seen God?” Without a moment’s hesitation, Sri Ramakrishna replied: “Yes, I have. I see Him as clearly as I see you, only in a much intenser sense.” Apart from removing doubts from the mind of Narendra, Sri Ramakrishna won him over through his pure, unselfish love. Thus began a guru-disciple relationship which is quite unique in the history of spiritual masters. Narendra now became a frequent visitor to Dakshineshwar and, under the guidance of the Master, made rapid strides on the spiritual path. At Dakshineshwar, Narendra also met several young men who were devoted to Sri Ramakrishna, and they all became close friends. Difficult Situations After a few years two events took place which caused Narendra considerable distress. One was the sudden death of his father in 1884. This left the family penniless, and Narendra had to bear the burden of supporting his mother, brothers and sisters. The second event was the illness of Sri Ramakrishna which was diagnosed to be cancer of the throat. In September 1885 Sri Ramakrishna was moved to a house at Shyampukur, and a few months later to a rented villa at Cossipore. In these two places the young disciples nursed the Master with devoted care. In spite of poverty at home and inability to find a job for himself, Narendra joined the group as its leader. Beginnings of a Monastic Brotherhood Sri Ramakrishna instilled in these young men the spirit of renunciation and brotherly love for one another. One day he distributed ochre robes among them and sent them out to beg food. In this way he himself laid the foundation for a new monastic order. He gave specific instructions to Narendra about the formation of the new monastic Order. In the small hours of 16 August 1886 Sri Ramakrishna gave up his mortal body. After the Master’s passing, fifteen of his young disciples (one more joined them later) began to live together in a dilapidated building at Baranagar in North Kolkata. Under the leadership of Narendra, they formed a new monastic brotherhood, and in 1887 they took the formal vows of sannyasa, thereby assuming new names. Narendra now became Swami Vivekananda (although this name was actually assumed much later.) Awareness of Life’s Mission After establishing the new monastic order, Vivekananda heard the inner call for a greater mission in his life. While most of the followers of Sri Ramakrishna thought of him in relation to their own personal lives, Vivekananda thought of the Master in relation to India and the rest of the world. As the prophet of the present age, what was Sri Ramakrishna’s message to the modern world and to India in particular? This question and the awareness of his own inherent powers urged Swamiji to go out alone into the wide world. So in the middle of 1890, after receiving the blessings of Sri Sarada Devi, the divine consort of Sri Ramakrishna, known to the world as Holy Mother, who was then staying in Kolkata, Swamiji left Baranagar Math and embarked on a long journey of exploration and discovery of India. Discovery of Real India During his travels all over India, Swami Vivekananda was deeply moved to see the appalling poverty and backwardness of the masses. He was the first religious leader in India to understand and openly declare that the real cause of India’s downfall was the neglect of the masses. The immediate need was to provide food and other bare necessities of life to the hungry millions. For this they should be taught improved methods of agriculture, village industries, etc. It was in this context that Vivekananda grasped the crux of the problem of poverty in India (which had escaped the attention of social reformers of his days): owing to centuries of oppression, the downtrodden masses had lost faith in their capacity to improve their lot. It was first of all necessary to infuse into their minds faith in themselves. For this they needed a life-giving, inspiring message. Swamiji found this message in the principle of the Atman, the doctrine of the potential divinity of the soul, taught in Vedanta, the ancient system of religious philosophy of India. He saw that, in spite of poverty, the masses clung to religion, but they had never been taught the life-giving, ennobling principles of Vedanta and how to apply them in practical life. Thus the masses needed two kinds of knowledge: secular knowledge to improve their economic condition, and spiritual knowledge to infuse in them faith in themselves and strengthen their moral sense. The next question was, how to spread these two kinds of knowledge among the masses? Through education – this was the answer that Swamiji found. Need for an Organization One thing became clear to Swamiji: to carry out his plans for the spread of education and for the uplift of the poor masses, and also of women, an efficient organization of dedicated people was needed. As he said later on, he wanted “to set in motion a machinery which will bring noblest ideas to the doorstep of even the poorest and the meanest.” It was to serve as this ‘machinery’ that Swamiji founded the Ramakrishna Mission a few years later. Decision to attend the Parliament of Religions It was when these ideas were taking shape in his mind in the course of his wanderings that Swami Vivekananda heard about the World’s Parliament of Religions to be held in Chicago in 1893. His friends and admirers in India wanted him to attend the Parliament. He too felt that the Parliament would provide the right forum to present his Master’s message to the world, and so he decided to go to America. Another reason which prompted Swamiji to go to America was to seek financial help for his project of uplifting the masses. Swamiji, however, wanted to have an inner certitude and divine call regarding his mission. Both of these he got while he sat in deep meditation on the rock-island at Kanyakumari. With the funds partly collected by his Chennai disciples and partly provided by the Raja of Khetri, Swami Vivekananda left for America from Mumbai on 31 May 1893. The Parliament of Religions and After His speeches at the World’s Parliament of Religions held in September 1893 made him famous as an ‘orator by divine right’ and as a ‘Messenger of Indian wisdom to the Western world’. After the Parliament, Swamiji spent nearly three and a half years spreading Vedanta as lived and taught by Sri Ramakrishna, mostly in the eastern parts of USA and also in London. Awakening His Countrymen He returned to India in January 1897. In response to the enthusiastic welcome that he received everywhere, he delivered a series of lectures in different parts of India, which created a great stir all over the country. Through these inspiring and profoundly significant lectures Swamiji attempted to do the following: to rouse the religious consciousness of the people and create in them pride in their cultural heritage; to bring about unification of Hinduism by pointing out the common bases of its sects; to focus the attention of educated people on the plight of the downtrodden masses, and to expound his plan for their uplift by the application of the principles of Practical Vedanta. Founding of Ramakrishna Mission Soon after his return to Kolkata, Swami Vivekananda accomplished another important task of his mission on earth. He founded on 1 May 1897 a unique type of organization known as Ramakrishna Mission, in which monks and lay people would jointly undertake propagation of Practical Vedanta, and various forms of social service, such as running hospitals, schools, colleges, hostels, rural development centres etc, and conducting massive relief and rehabilitation work for victims of earthquakes, cyclones and other calamities, in different parts of India and other countries. Belur Math In early 1898 Swami Vivekananda acquired a big plot of land on the western bank of the Ganga at a place called Belur to have a permanent abode for the monastery and monastic Order originally started at Baranagar, and got it registered as Ramakrishna Math after a couple of years. Here Swamiji established a new, universal pattern of monastic life which adapts ancient monastic ideals to the conditions of modern life, which gives equal importance to personal illumination and social service, and which is open to all men without any distinction of religion, race or caste. Disciples It may be mentioned here that in the West many people were influenced by Swami Vivekananda’s life and message. Some of them became his disciples or devoted friends. Among them the names of Margaret Noble (later known as Sister Nivedita), Captain and Mrs Sevier, Josephine McLeod and Sara Ole Bull, deserve special mention. Nivedita dedicated her life to educating girls in Kolkata. Swamiji had many Indian disciples also, some of whom joined Ramakrishna Math and became sannyasins. Last Days In June 1899 he went to the West on a second visit. This time he spent most of his time in the West coast of USA. After delivering many lectures there, he returned to Belur Math in December 1900. The rest of his life was spent in India, inspiring and guiding people, both monastic and lay. Incessant work, especially giving lectures and inspiring people, told upon Swamiji’s health. His health deteriorated and the end came quietly on the night of 4 July 1902. Before his Mahasamadhi he had written to a Western follower: “It may be that I shall find it good to get outside my body, to cast it off like a worn out garment. But I shall not cease to work. I shall inspire men everywhere until the whole world shall know that it is one with God.” Chronology of Main Events related to Swami Vivekananda 1863 January 12 Birth in Kolkata 1879 Enters Presidency College 1880 Transfers to General Assembly Institution 1881 November First meeting with Sri Ramakrishna 1882-1886 Association with Sri Ramakrishna 1884 Passes B. A. Examination Father passes away 1885 Sri Ramakrishna’s last illness 1886 August 16 Sri Ramakrishna passes away Fall Establishes Baranagar Math December 24 Informal vow of sannyasa at Antpur 1887 January Formal vows of sannyasa at Baranagar Monastery 1890-1893 Travels all over India as itinerant monk 1892 December 24 At Kanyakumari, South India 1893 February 13 First public lecture, Secunderabad, South India May 31 Sails for America from Mumbai July 25 Lands at Vancouver, Canada July 30 Arrives in Chicago August Meets Professor John Ft. Wright of Harvard University September 11 First address at Parliament of Religions, Chicago September 27 Final address at Parliament of Religions November 20 Begins mid-western lecture tour 1894 April 14 Begins lectures and classes on East Coast May 16 Speaks at Harvard University July-August At Green Acre Religious Conference November Founds Vedanta Society of New York 1895 January Begins classes in New York June 4-18 At Camp Percy, New Hampshire June-August At Thousand Island Park on St. Lawrence river, N.Y. August-September In Paris October-November Lectures in London December 6 Sails for New York 1896 March 22-25 Speaks at Harvard University, offered Eastern Philosophy chair April 15 Returns to London May-July Gives classes in London May 28 Meets Max Muller in Oxford August-September In the Europe for six weeks October-November Gives classes in London December 30 Leaves Naples for India 1897 January 15 Arrives in Colombo, Sri Lanka February 6-15 In Chennai February 19 Arrives in Kolkata May 1 Establishes Ramakrishna Mission Association, Kolkata May-December Tours northwest India 1898 January Returns to Kolkata May Begins North India pilgrimage with Western devotees August 2 At Amarnath, Kashmir December 9 Consecrates Belur Math 1899 March 19 Establishes Advaita Ashrama at Mayavati June 20 Leaves India for second visit to the West July 31 Arrives in London August 28 Arrives in New York City August-November At Ridgely Manor, New York December 3 Arrives in Los Angeles 1900 February 22 Arrives in San Francisco April 14 Founds Vedanta Society in San Francisco June Final classes in New York City July 26 Leaves for Europe August 3 Arrives in Paris for International Exposition September 7 Speaks at Congress of History of Religions at Exposition October 24 Begins tour of Vienna, Constantinople, Greece and Cairo November 26 Leaves for India December 9 Arrives at Belur Math 1901 January Visits Mayavati March-May Pilgrimage in East Bengal and Assam 1902 January-February Visits Bodh Gaya and Varanasi March Returns to Belur Math July 4 Mahasamadhi COURTSY BELURMATH

Under Income Tax Act following types of allowance are defined

House Rent Allowance:
Under sections 10(13A) of Income Tax Act, 1961 allowance is defined as an amount received by an employee paid by his/ her employer as a rent of his/her house. It is a taxable income. There is no exemption in tax if he is living in his own house or house for which he is not paying rent. There are following amount which are exempt from tax:
Actual house rent paid by that individual
Rent paid for the accommodation over 10% of the salary
50% of the salary if house is placed at Delhi, Mumbai, Kolkata, Chennai or 40% of the salary in it is placed in any other city
Entertainment Allowance:
It is the amount paid by employer for availing entertainment services. Under section 16(ii) of Income Tax Act, 1961 it is entitled to deduction in tax from is salary. But in this case deduction is given to his gross salary which also includes entertainment allowance. Deduction in tax against this allowance can be divided into two parts :
In case of Government employee entitled to minimum deduction of
Entertainment allowance received
20% of basic salary excluding any other allowance
Rs. 5000 In case of other employee entitled to minimum deduction of
(a) Entertainment allowance received
20% of basic salary excluding any other allowance
Rs. 7500
Entertainment allowance received during 1954-1955
Other Special Allowances
Children Education Allowance
Tribal Area Allowance
Hostel Expenditure Allowance
Remote Area Allowance
Compensatory Field Area Allowance
Counter Insurgency Allowance
Border Area Allowance
Hilly Area Allowance

Allowances for there is a provision of exempt in income tax are:
Allowance given to a citizen of India, who is a government employee, for rendering services outside India
Allowances given to Judges of High Courts
Allowance given Judges of Supreme Court
Allowances received by an employee of UNO

What is Perquisite
Under section 17(2) of Income Tax Act, 1961 perquisite is defined as:
Amount paid for the rent-free accommodation provided to the assessee by his employer
Any concession in the matter of rent respecting any accommodation provided to the assessee by his employer
Any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:
1. By a company to an employee, who is a director thereof
2. By a company to an employee being a person who has a substantial interest in the company
3. By any employer to an employee whose income under the head 'Salaries' exceeds Rs.24000 excluding the value of non monetary benefits or amenities
4. Any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee
5. Any sum payable by the employer whether directly or through a fund, other than a recognised provident fund or EPF, to effect an assurance on the life of the assessee or to effect a contract for an annuity

There are following perquisites which are tax free:
Medical facility
Medical reimbursement
Refreshments
Subsidised Luch/ Dinner provided by employer
Facilities For Recreation
Telephone Bills
Products at concessional rate to employee sold by his/ her employer
Insurance premium paid by employer
Loans to employees by given by employer
Transportation
Training
House without rent
Residence Facility to member of Parliament, judges of High Court/ Supreme Court
Conveyance to member of Parliament, judges of High Court/ Supreme Court
Contribution of employers to employee's pension, annuity schemes and group insurance

Deductions from Salary income
Certain deductions are available while determining the taxable salary income.

A) Standard Deduction
Income tax slabs 2009-2010 (for Men) in India:
Income Tax Slab (in Rs.) Tax
0 to 1,60,000 No Tax
1,60,001 to 3,00,000 10%
3,00,001 to 5,00,000 20%
Above 5,00,000 30%

Income tax slabs 2009-2010 (for Women) in India:
Income Tax Slab (in Rs.) Tax
0 to 1,90,000 No Tax
1,90,001 to 3,00,000 10%
3,00,001 to 5,00,000 20%
Above 5,00,000 30%

Income tax slabs 2009-2010 (for Senior Citizens) in India:
Income Tax Slab (in Rs.) Tax
0 to 2,40,000 No Tax
2,40,001 to 3,00,000 10%
3,00,001 to 5,00,000 20%
Above 5,00,000 30%

B) Professional Tax
Professional tax, which is paid, is allowed as deduction.

C) Arrears salary
If salary is received in arrears or in advance, it can be spread over the years to which it relates and be taxed accordingly as per section 89(1) of the Income tax Act.

BANK RECONCILIATION STATEMENT

On any particular date the bank balance shown by the bank column cash book and that shown by the pass book should be the same. But if there is difference between the two, the business concern will find out the reasons to reconcile the balance. Business concern maintains the cash book for recording cash and bank transactions. The Cash book serves the purpose of both the cash account and the bank account. It shows the balance of both at the end of a period. Bank also maintains an account for each customer in its book. All deposits by the customer are recorded on the credit side of his/her account and all withdrawals are recorded on the debit side of his/her account. A copy of this account is regularly sent to the customer by the bank. This is called ‘Pass Book’ or Bank statement. It is usual to tally the firm’s bank transactions as recorded by the bank with the cash book. But sometimes the bank balances as shown by the cash book and that shown by the pass book/bank statement do not match. If the balance shown by the pass book is different from the balance shown by bank column of cash book, the business firm will identify the causes for such difference. It becomes necessary to reconcile them. To reconcile the balances of Cash Book and Pass Book a statement is prepared. This statement is called the ‘Bank Reconciliation Statement. It can be said that : Bank Reconciliation Statement is a statement prepared to reconcile the difference between the balances as per the bank column of the cash book and pass book on any given date. Need of preparing Bank Reconciliation Statement It is neither compulsory to prepare Bank Reconciliation Statement nor a date is fixed on which it is to be prepared. It is prepared from time to time to check that all transactions relating to bank are properly recorded by the businessman in the bank column of the cash book and by the bank in its ledger account. Thus, it is prepared to reconcile the bank balances shown by the cash book and by the bank statement. It helps in detecting, if there is any error in recording the transactions and ascertaining the correct bank balance on a particular date. REASONS FOR DIFFERENCE When a businessman compares the Bank balance of its cash book with the balance shown by the bank pass book, there is often a difference. As the time period of posting the transactions in the bank column of cash book does not correspond with the time period of posting in the bank pass book of the firm, the difference arises. The reasons for difference in balance of the cash book and pass book are as under : 1. Cheques issued by the firm but not yet presented for payment When cheques are issued by the firm, these are immediately entered on the credit side of the bank column of the cash book. Sometimes, receiving person may present these cheques to the bank for payment on some later date. The bank will debit the firm’s account when these cheques are presented for payment. There is a time period between the issue of cheque and being presented in the bank for payment. This may cause difference to the balance of cash book and pass book. 2. Cheques deposited into bank but not yet collected When cheques are deposited into bank, the firm immediately enters it on the debit side of the bank column of cash book. It increases the bank balance as per the cash book. But, the bank credits the firm’s account after these cheques are actually realised. A few days are taken in clearing of local cheques and in case of outstation cheques few more days are taken. This may cause the difference between cash book and pass book balance. 3. Amount directly deposited in the bank account Sometimes, the debtors or the customers deposit the money directly into firm’s bank account, but the firm gets the information only when it receives the bank statement. In this case, the bank credits the firm’s account with the amount received but the same amount is not recorded in the cash book. As a result the balance in the cash book will be less than the balance shown in the Pass book. 4. Bank Charges The bank charge in the form of fees or commission is charged from time to time for various services provided from the customers’ account without the intimation to the firm. The firm records these charges after receiving the bank intimation or statement. Example of such deductions is : Interest on overdraft balance, credit cards’ fees, outstation cheques, collection charges, etc. As a result, the balance of the cash book will be more than the balance of the pass book. 5. Interest and dividend received by the bank Sometimes, the interest on debentures or dividends on shares held by the account holder is directly deposited by the company through Electronic Clearing System (ECS). But the firm does not get the information till it receives the bank statement. As a consequence, the firm enters it in its cash book on a date later than the date it is recorded by the bank. As a result, the balance as per cash book and pass book will differ. 6. Direct payments made by the bank on behalf of the customers Sometimes, bank makes certain payments on behalf of the customer as per standing instructions. Telephone bills, rent, insurance premium, taxes, etc are some of the expenses. These expenses are directly paid by the bank and debited to the firm’s account immediately after their payment. but the firm will record the same on receiving information from the bank in the form of Pass Book or bank statement. As a result, the balance of the pass book is less than that of the balance shown in the bank column of the cash book. 7. Dishonour of Cheques/Bill discounted If a cheque deposited by the firm or bill receivable discounted with the bank is dishonoured , the same is debited to firm’s account by the bank. But the firm records the same when it receives the information from the bank. As a result, the balance as per cash book and that of pass book will differ. 8. Errors committed in recording transactions by the firm There may be certain errors from firm’s side, e.g., omission or wrong recording of transactions relating to cheques deposited, cheques issued and wrong balancing etc. In this case, there would be a difference between the balances as per Cash Book and as per Pass Book. Bank Reconciliation Statement Errors committed in recording transactions by the Bank Sometimes, bank may also commit errors, e.g., omission or wrong recording of transactions relating to cheques deposited etc. As a result, the balance of the bank pass book and cash book will not agree. To reconcile the bank balance as shown in the pass book with the balance shown by the cash book, Bank Reconciliation Statement is prepared. After identifying the reasons of difference, the Bank Reconciliation statement is prepared without making change in the cash book balance. We may have the following different situations with regard to balances while preparing the Bank Reconciliation statement. These are: 1. Favourable balances (a) Debit balance as per cash book is given and the balance as per pass book is to be ascertained. (b) Credit balance as per pass book is given and the balance as per cash book is to be ascertained. 2. Unfavourable balance/overdraft balance (a) Credit balance as per cash book (i.e. overdraft) is given and the balance as per pass book is to be ascertained. (b) Debit balance as per pass book (i.e. overdraft) is given and the balance as per cash book is to be ascertained. The following steps are taken to prepare the bank reconciliation statement: (i) Favourable balances : When debit balance as per cash book or credit balance as per pass book is given : (a) Take balance as a starting point say Balance as per Cash Book. (b) Add all transactions that have resulted in increasing the balance of the pass book. (c) Deduct all transactions that have resulted in decreasing the balance of pass book. (d) Extract the net balance shown by the statement which should be the same as shown in the pass book. In case balance as per pass book is taken as starting point all transactions that have resulted in increasing the balance of the Cash book will be added and all transactions that have resulted in decreasing the balance of Cash book will be deducted. Now extract the net balance shown by the statement which should be the same as per the Cash book.. The following illustration helps to understand dealing with the favourable balance as per cash book or pass book. causes difference in the two balances. The causes for difference may be illustrated in detail as follows: Causes Cash Book Pass Book 1. Cheques issued but not yet presented for payment Entry is made Balance =Decreased No entry is made till the cheques are presented for payment. Balance= Same as before 2. Cheques paid into the bank but not yet cleared. Entry is made Balance = Increased No entry is made till the cheques are cleared Balance = same 3. Interest allowed by the Bank No entry is made till the Pass Book is checked Balance = Same Entry is made Balance = Increased 4. Interest and Expenses Charged by the Bank No entry is made till the Pass Book is checked Balance = Same Entry is made Balance = Decreased 5. Interest and dividends collected by Bank No entry is made till the Pass Book is checked Balance = Same Entry is made Balance = Increased 6. Direct payments by the bank No entry is made till the Pass Book is checked Balance = Same Entry is made Balance = decreased 7. Direct payments into the bank by a customer No entry is made till the Pass Book is checked Balance = Same Entry is made Balance = Increased 8. Dishonor of a bill discounted with the bank No entry is made till the pass Book is checked Balance = Same Entry is made Balance = decreased 9. Bills collected by the bank on behalf of the customer No entry is made till the Pass Book is checked Balance = Same Entry is made Balance = Increased 10 Errors committed either in Cash Back or Pass Book NEED AND IMPORTANCE OF BANK RECONCILIATION STATEMENT The need and importance of the bank reconciliation statement may be given as follows: 1. The reconciliation process helps in bringing out the errors committed either in cash Book or Pass Book. 2. Bank reconciliation statement may also show any undue delay in the clearance of cheques. 3. Sometimes the cashier may have the tendency of cheating like he may made entries in the Cash Book only but never deposit the cash into bank. These types of frauds by the entrepreneur’s staff or bank staff may be detected only through bank reconciliation statement. So this way bank reconciliation statement acts as a control technique too. PROCEDURE FOR PREPARATION OF BANK RECONCILIATION STATEMENT A. bank reconciliation statement is prepared to reconcile the two balances of Cash Book and Pass Book. So, when you will prepare a bank reconciliation statement you will start it with one balance make adjustments and then you will reach to the other balance. This way both the balances will agree. The way the adjustments should be made may be illustrated as follows: Particulars Amount Add Balance at Bank as Per Cash Book Rs. Xxx (i) Cheques issued but not yet presented for payment Xx (2) Interest allowed by the bank Xx (3) Interest and dividend collected by the bank Xx (4) Direct payments into the bank by a customer Xx (5) Bills collected by the bank on behalf of the customer Xx (+) xx Less : (1) Cheques paid into the bank but not yet cleared Xx (2) Interest and expenses charged by the bank Xx (3) Direct payment by the Bank Xx (4) Dishonor of a bill discounted with the bank Xx (-) xx Balance as per Pass Book Xxx

ABCD OF ACCOUNTS

2 CONTENTS A) Bookkeeping 1) About Single Entry System and its disadvantages 2) About Bookkeeping and Accounting Process 3) About Double Accounting System and its advantages. 4) Classification of Accounts 5) Golden Rule of Debit and Credit 6) Abbreviations used in Accounts 7) Understanding Debits and Credits 8) Understanding Cash Book, Journal, General Ledger, Trial Balance, Income & Expenditure Account and Balance Sheet. 9) Double Entry Working Examples 10) Notes and References B) Main Manual 1) Books/ Documents to be maintained 2) Procedures to be followed to Convert the Single Entry System to Double Entry System 3) Notes and Suggestions 4) Performa of Debit/Credit note 5) Illustration for working 3 1. Single Entry Accounting System Single entry system of book keeping may be described as a loose and defective way of recording transactions, wherein some transactions are recorded in their two fold aspect, some are recorded in so far as they effect one aspect only, and few other are completely omitted to be recorded. Thus it can be seen that there is no system or method about single entry. Under this system a cash book and other ledger are maintained. Disadvantages of Single Entry System. Ø Since every debit does not have a corresponding credit, a Trial Balance can not be extracted to test the arithmetical accuracy of the entries. Ø In absence of proper records of any assets and of any allowances for depreciation or other losses of value, it is not possible to prepare a Balance Sheet. Ø It is too easy to perpetrate the errors and frauds and too difficult to detect them. 2. The book Keeping and Accounting Process In accountancy the Double Entry Bookkeeping (or double entry accounting) is the basis of the standard system used by businesses and other organizations to record financial transactions. The system is called ‘double entry’ because each transaction is recorded in at least two accounts. Each transaction results in at least one account being debited and at least one account being credited with the total debits of the transaction equal to the total credits. For example: - If Company A sell an item to Company B and Company B pay Company A by cheque then the book keeper of Company A credits the “Sales” and debits the “Bank”. Conversely the bookkeeper of Company B debits the account “Purchases” and credits the account “Bank”. 4 Historically the debit entries are recorded on the left side and credit values on the right hand side of the general ledger account and in the normal course of business, a document is produced each time a transaction occurs. Sales and purchases usually have invoices or receipts. Deposit slips are produced when lodgements (deposits) are made to a bank account. Bookkeeping involves recording the details of all of these source documents into multi-column journals (also known as a book of first entry or daybooks.) After a certain period typically a month, the columns in each journal are totaled to give a summary for the period. Using the rules of double entry, these journal summaries are then transferred to their respective accounts in the ledger is called Posting. Once the posting process is complete, accounts kept using the “T” format undergo balancing which is simply a process to arrive at the balance of the account. 3. Double entry accounting system The system of double entry may be well compared to a scale which must have equal weight on both sides in order that the scale is balanced. Thus if the weight of one side of the scale is increased or decreased the same weight must be correspondingly added to or removed from, the other side. A more common expression of double entry book keeping system is the accounting equation. The total assets of a firm/ institution are equal of the equities. This reflects the fundamental equation of A= E, Where A denotes Assets and E denotes equity. Assets are the goods and properties which the institute owns as well as claims against outsiders which the institute has not yet collected. 5 Equities are the claims against the assets and indicate the source of assets. The source may be owners themselves or outsiders, e.g. owners invest funds in Organization and Creditors lend money in the Organization. Advantage of Double Entry System:- Ø It is possible to keep a full record of dual aspect of each transaction. Ø Transactions are recorded in a scientific and systematic manner and thus the books of accounts provide the most reliable information for controlling the Organization efficiently and effectively. Ø Since the total debit under this system be equal to total Credit, arithmetical accuracy of the books can be tested by means of a trial balance. Ø An income and expenditure accounts can be prepared to know the excess income/ expenditure during a particular period and to know how such excess income/ expenditure has arisen Ø The financial position of the Organization can be readily ascertained by preparing a Balance Sheet. Ø Frauds are prevented, because alteration in accounts becomes difficult and discovery of irregularities is facilitated. 4. Classification of Accounts:- · Personal Account:- when a transaction involved with a person known as personal account such as Mr. Roy, Bose& sons ABC Ltd. co. etc. · Nominal Account:- All recurring expenses/incomes are known as Nominal Account, such as salary, Rent, Interest etc. · Real Account:- Other than above two accounts all are fall under this category, such as Machinery, Furniture etc. 6 5. Golden Rule of Debit and Credit · In case of Personal Account - Debit the receiver and Credit the giver. · In case of Nominal Account- Debit all expenses and losses and Credit all income and liabilities. · In case of Real Accounts - Debit what comes in and credit what goes out. 6. Abbreviations used in bookkeeping - · a/c – account · B/S – Balance Sheet · c/d – carried down · b/d – brought down · b/f – brought forward · Dr – Debit record · Cr – Credit record · G/L – General Ledger: (or N/L – Nominal Ledger) · P&L – Profit & Loss · TB – Trial Balance 7. Understanding Debits and Credits - In a simpler way it can be explained as when an amount is entered on the left side of an account, it is a debit and the account is said to be debited. When an account is entered on the right side, it is a credit, and the account is said to be credited. Here are basic debit & credit rule: - 7 Assets & Expenses _________________ Dr Cr (Increases) (Decreases) Liabilities, Capital and Income ___________________________ Dr Cr (Decreases) (Increases) An account has a debit balance when the sum of its debits exceeds the sum of its credits: it has a credit balance when the sum of the credits is the greater. In doubleentry accounting, which is in almost universal use, there are equal debit and credit entries for every transaction. Where only two accounts are affected, the debit and credit amounts are equal. If more than two accounts are affected, the total of the debit entries must equal the total of the credit entries. Debits and Credits Double-entry bookkeeping is governed by the accounting equation. If revenue equals expenses, the following basic equation must be true: Assets = liabilities + equity 8 At any point in time, revenue may not equal expenses. If so the equation can be further expanded, so that the (extended) equation becomes: Assets = liabilities + equity + (revenue – expenses) Examples of debits and credits Purchase of a Computer Debit Computer account (Fixed asset account) is increased Credit Creditors account (Liability account) is increased Paying supplier for the Computer Debit Creditors account (Liability account) is reduced. Credit Bank account (Asset account) is reduced. 8. Understanding Cash Book, Journal, General Ledger, Trial Balance, Income & Expenditure A/c and Balance Sheet: - Cash Book - All cash transactions are entered in the cash book straightway, and ledger accounts are prepared on the basis of such records. Hence, Cash Book is considered as a Subsidiary book. Cash book is again a ledger and a principal book since, it serves as cash account and book account, the balances of which are recorded in the trial balance via ledger directly. Cash book has debit and credit sides. All receipts are entered on the debit side and all payments are entered on the credit side. It is maintained under the Double entry principle. Feature of Cash Book: 1. All cash receipts and cash payments are entered chronologically in the cash book 9 2. It never shows a credit balance 3. It serves the functions of Journal also. Journal – A journal is a record that keeps accounting transactions in chronological order i.e. as they occur. All accounting transactions are recorded through journal entries that show account names, amounts, and whether those accounts are recorded in debit or credit side of accounts. A journal entry is called "balanced" when the sum of debit side amounts equals to the sum of credit side amounts. General Ledger – The complete set of accounts for a business entry is called a general ledger. It is the “reference book” of the accounting system and is used to classify and summarize transactions and to prepare data for financial statements. It is also a valuable source of information for managerial purposes, giving for example the amount of sales for the period or the cash balance at the end of the period. Trial Balance – As every transaction results in an equal amount of debits and credits in the ledger, the total of all debit entries in the ledger should equal the total of all credit entries. At the end of the accounting period, we check the equality by preparing a two-column schedule called a trial balance, which compares the total of all debit balances with the total of all credit balances. The procedure is as follows: - 1. List account titles in numerical order. 2. Record balances of each account, entering debit balances in the left column and credit balances in the right column. 3. Add the columns and record the totals. 4. Compare the totals. They must be the same. 5. If the totals agree, the trial balance is in balance, indicating that debits and credits are equal for the hundreds or thousands of transactions entered in the 10 ledger. While the trial balance provides arithmetic proof of the accuracy of the records, it does not provide theoretical proof. Income & Expenditure A/c - A Income & Expenditure Account, shows the revenues from operations, expenses of operating the concern, and the resulting net profit or loss (Excess of Income over Expenditure/ Excess of expenditure over Income) of a organization over a specific period of time. In short Income & Expenditure Accounts is an account compiled at the end of an accounting period to Net results of operations i.e. (Excess of Income over Expenditure/ Excess of expenditure over Income). Balance Sheet - A balance sheet is a snapshot of a business’ financial condition at a specific moment in time, usually at the close of an accounting period. A balance sheet comprises assets, liabilities, and owners’ or stockholders’ equity. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities. At any given time, assets must equal liabilities plus owners’ equity. An asset is anything the business owns that has monetary value. Liabilities are the claims of creditors against the assets of the business. A balance sheet helps a small business owner quickly get a handle on the financial strength and capabilities of the business. Is the business in a position to expand? Can the business easily handle the normal financial ebbs and flows of revenues and expenses? Or should the business take immediate steps to bolster cash reserves? Balance sheets can identify and analyze trends, particularly in the area of receivables and payables. Is the receivables cycle lengthening? Can receivables be collected more aggressively? Is some debt uncollectable? Has the business been slowing down payables to forestall an inevitable cash shortage? Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant the firm. 11 Specimen of Balance Sheet. Balance sheet As on 31stMarch 2xxx Liabilities Total Amount Assets Total Amount 1) Capital A/c 1) Fixed Assets a. Plant & Machinery b. Furniture & Fixtures c. Computers d. Telephone 2) Reserve and surplus 2) Long term Investments 3) Current Liabilities a. Sundry Creditors b. Outstanding Expenses 3) Current Assets a. Cash balance b. Bank balance c. Prepaid/ advances d. Sundry debtors Total Total 21 10. Notes and References – The following Notes should be considered after/before going through the above points: - · Classification of accounts is very important, because each of the accounts are increased and decreased according to the type of account it is (asset, liability, capital, withdrawals, revenues and expenses). · All asset accounts will be increased and decreased following the asset diagram. Cash, like all other assets, is increased with a debit and decreased with a credit. · Revenue is earned and recorded when services are rendered or goods are sold. · If one transaction refers to a prior transaction, you must look at the prior transaction in recording this transaction to avoid double recording revenue or an expense and avoid misstating a receivable or liability account. · The rules of debit and credit are used throughout this course and future accounting courses. Since these rules are used repeatedly throughout the term, it is important that you familiarize yourself with these rules. · A debit or credit is both types of parts of a money transaction in a double entry bookkeeping system. · A credit always does the opposite to a particular account that a debit does. · In a complete transaction in a double entry bookkeeping system, the sum of the credits must equal the sum of the debits for the transaction to be in balance. · Since in the world there are only two kinds of accounts, your companies, and all the other companies in the world, credits and debits should act one way on your accounts, and exactly the opposite on other companies' accounts, so that money either flows from you to others or from others to you. 22 MAIN MANUAL This manual contains information and instructions to assist in preparing the annual accounts and other related reports for each of the unit of ICFRE. After conducting the training to staff and after considering the background of people who will maintain the accounts, the manual has been prepared in the simplest of form so that it can cover all the accounting aspects and is understood by each and every person. 1. Books/ Documents to be maintained – The following books of accounts are required to be maintained by all the units: - · Cash Book · Journal Register · General Ledger · Fixed Asset Register · Advance Register/Outstanding Register · File for all the payment/ receipts vouchers with supporting bills · Bank Reconciliation Statement file 2. Procedures to be followed to Convert the Single Entry System to Double Entry System The procedure to be followed for conversion of books from single entry to double entry depends upon the records maintain in the single entry system. Where the cash books and ledgers are maintained, the procedure will be as under: 1. The first step is to prepare an Opening Statement of Affairs by balances appearing in Ledger accounts, Cash account and Banks accounts. 23 Statement of Affairs: A Statement of Affairs is a statement of Assets & Liabilities in the shape of a Balance sheet. It is to be prepared to find out the financial position of Institutes/Entity. While drawing up the Statement of Affairs matters like unpaid or accrued charges, payment made in advance etc should be carefully brought in to consideration. 2. After drawing opening statement of affairs, the opening balances should now be posted to their respective Ledger account. 3. A Journal Book should be maintained for recording day to day transactions according to their occurrence. Journal vouchers (specimen attached herewith) should also be maintained and the posting in journal should be done from these vouchers. 4. Every transaction must be recorded first in journal book/ Cash Book thereafter these should be posted in their respective Ledger accounts. 5. At the time of Posting care should be taken i.e. the receipt side of cash book is to be posted in the credit side of ledger account and payment side of cash book is to be posted in the debit side of ledger account. 6. Every transaction must have a supportive and respective Voucher whether it is Cash transaction or Non Cash transactions. 7. Periodical Bank Reconciliation Statements should also be prepared to keep a track of deposits and withdrawals from bank account. 8. Periodical Trial Balance should also be prepared to check whether posting has been done correctly or not. 9. Periodical Inter Unit Reconciliation Statements should be prepared to cross check inter unit balances. 24 3. Notes and Suggestions 1. Uniform Heads of Accounts – It is suggested that uniform heads of accounts should be maintained by all the units. These heads should be defined with consultation of all the units. There should be proper guidelines which must describe the heads of accounts to be used for various transactions. This will help us to maintain accounts in uniformity with all units. 2. Petty Cash/ Cash Expenses – There must be a Cash Purchasing Policy, which should pre-define a certain amount by which cash purchases or expenditure can be done. Usually it should be of petty nature say Rs. 1 to Rs. 500, beyond that the payment must be done through cheques. The “Cash disbursement Voucher (CDV)” must be maintained for the payments which should be completed and proper support document must be attached. The CDV must also include the signature of the account’s authorized signer and the signers printed name. 3. Accounts Payable and Processing of Payments - All payments for goods or services provided to the units must be processed through the Accounts Payable Department. This is to be done to ensure that all payments are made in compliance with ICFRE’s policies and procedures, and to ensure that proper controls and safeguards are in place to protect ICFRE’s assets. In order for the Accounts Payable Department to process payment, the Accounts Payable Department must secure the proper authorization to process the payment. Accounts Payable cannot process a payment unless the purchase was made in accordance with ICFRE’s Purchasing Policy and the goods or services have been satisfactorily received and this receipt has been communicated in writing to the Accounts Payable department. In order to ensure that proper controls are in place to protect the university’s assets, ensure compliance with federal regulations, and to maintain an environment of sound business practices. To ensure that the university is aware of all expenditures that it is recording, and to 25 possess documentation sufficient to ensure that proper controls have been implemented and followed. For all payment requests original invoices/receipts/statements must be submitted to Accounts Payable. 4. Accounting should be done on accrual basis – The entire accounting must be done on accrual basis i.e. the revenues, costs, assets and liabilities must be reflected in the period in which they accrue and arise. 5. Staff Advances: - Each unit must maintain separate ledger account for each employee. All the advances given to them should be recorded in this account followed by claim made by them against these advances. This will allow the units to know the amount of advance pending with respective employee. When an advance is paid to staff, it should be debited to concerned advance account, and at time of adjustment of advance, it should be credited to the same head of a/c. 6. Inter Institute Transaction. - As per existing practice of ICFRE, when an employee is transferred from one unit to other, the last pay certificate (LPC) of the concern employee is issued by the previous employer to the present employer with the direction to recover the outstanding balance of advances. Accordingly, the present employer recovers the amount from the salary of the concern employee and remits the same to his previous employer. Under this system problem may arise for recovery and timely remittance of the same, as a result the outstanding advances may not be properly maintain and settle. In order to avoid any discrepancies to settle the outstanding advances, following procedure should be followed 1. The previous employer will issue a debit note indicating the amount of advance to the present employer. 2. After receiving the above debit note the present employer passes the journal entry in own books by debiting advances account and crediting previous

conversion of single entry method to double entry method

Conversion into Double Entry System: Learning Objectives: Define and explain conversion method. How trading and profit and loss account and balance sheet is prepared under conversion method. Conversion of books from single entry system to double entry system is possible either with retrospective (i.e., on and from a date before the date of conversion arrangements) or with a prospective effect (i.e., on and from the date on which arrangements are made for conversion). Conversion with Prospective Effect: If the conversion is to be made with prospective effect a statement of assets and liabilities of a trader on a given date must be prepared. Care should be taken to see that the opening cash and bank balances and also the amount of debtors and creditors appearing in the statement, tally respectively with the opening balances of the cash book and the totals of debit and credit balances, extracted from the personal accounts of the ledger. An opening journal entry is to be made taking the items of assets and liabilities of the statement of affairs thus prepared and after opening the necessary ledger accounts the above journal entry is to be posted. All subsequent transactions are to be passed through different books of original entry such as cash book, purchase book, sales book, etc., and posted into ledger according to the principles of double entry. Conversion With Retrospective Effect: For example a trader whose accounting period begins on 1-4-1995 and the books have been maintained under single entry till 31-03-1999. It is decided to convert the books into double entry system with effect from 1-4-1995. This is a case of retrospective conversion. The recourse of the interim period i.e., from 1-4-1995 to 31-03-1999 are to be adjusted before the double entry system is adopted. Assuming that a statement of affairs at the commencement of accounting period (31-03-1995) is available and single entry records consists of cash book and personal ledger, the process of conversion proceeds as follows: Find out the total credit purchases and total credit sales. These can be obtained from the bought and sales ledger respectively. A journal entry should be passed to incorporate the balances appearing in the statement of affairs. Items should be posted in the respective accounts in the ledger. The cash book should be scrutinized and post the items of receipts and payments appearing in it in the appropriate accounts in the ledger. Cash sales and cash purchases can also be found out from the cash book. The figures should be posted to the sales and purchases account respectively. Post the credit sales and purchases in the ledger. Personal ledger should be scrutinized. Pick up the items for which no corresponding double entry has been effected. These items mostly consist of discount allowed to customers, or discount received, returns inwards, allowances, transfers, bad debts, etc. These items should be posted in the ledger. It is now possible to prepare a trial balance followed by a trading and profit and loss account and balance sheet. Abridged Conversion: There is a way to obtain final results by short cut method. When a summary of cash and other transactions are given; information regarding assets and liabilities in the beginning and at the end of the year is available, the final accounts can be drawn. In such a case, the missing items which may be any of the following are to be found out from the given data:- Capital Credit purchase credit sales Bills receivable Bills payable Sundry debtors Cash in hand and at bank Stock in the beginning Any of these items when unknown may be found out preparing a total debtors account and a total creditors account. Total Debtors Account To (1) Opening balance To (2) Credit sales To (3) B/R dishonoured - if any By (4) Cash received from debtors By (5) B/R Received By (6) Returns inwards By (7) Discount allowed By (8) Bad debts By (9) Closing Balance Total Creditors Account To (4) Cash paid to creditorsTo By(1) Opening balance To (5) B/p grantedTo By(2) Credit purchases To (3) B/p dishonoured - if any To (6) Returns outwards To (7) Discount received To (8) Closing Balance Capital: If capital is unknown prepare the statement of affairs. The difference of assets and liabilities will represent the capital. Credit Purchases: If credit purchases are unknown it can be ascertained from the total creditors account. Add item No. 4, 5, 6, 7, 8 and subtract from the result item No. 1 and 3. It can also be calculated in the following way: Acceptance given to creditors xxxxx Cash paid to creditors xxxxx Discount allowed by customers xxxxx Returns outwards xxxxx Creditors at the close of the year xxxxx Less creditors at the beginning xxxxx Credit purchases for the year xxxxx Credit Sales: If credit sales are unknown, it can be ascertain from the total debtors account. Add No. 4, 5, 6, 7, 8, 9 and subtract from the result item No. 1 and 3. It can be calculated in the following form: Acceptance received from debtors xxxxx Cash received from debtors xxxxx Discount allowed to debtors xxxxx Returns inwards xxxxx Debtors at the close of the year xxxxx Less debtors at the beginning xxxxx Credit sales for the year xxxxx Bills Receivable: I bill receivable are unknown the same may be ascertained from the total debtors account. The formula is: Item Nos. [(1) + (2) + (3)] - [(4) + (6) + (7) + (8) + (9)] It may also be ascertained in the following form: Bills receivable in hand on 1-1-19 xxxxx Acceptance received during the year xxxxx Less bills dishonoured xxxxx Less bills honored xxxxx Bills receivable on 31st December xxxxx Bills Payable: If bills payable are unknown the same may be ascertained from total creditors account: Item Nos. [(1) + (2) + (3)] - [(4) + (6) + (7) + (8)] It may also be calculated in the following form Bills payable in hand on 1-1-19 xxxxx Acceptance given during the year xxxxx Less acceptance honored xxxxx Bills bills payable on 31st December xxxxx Sundry Debtors: If opening balance of sundry debtors are unknown we can calculate it by the following method: Item Nos. [(4) + (5) + (6) + (7) + (8) + (9)] - [(3) + (2)] If closing balance of debtors is unknown: Item Nos. [(1) + (2) + (3)] - [(4) + (5) + (6) + (7) + (8)] Sundry Creditors: If opening balance of sundry Creditors are unknown we can calculate it by the following method: Item Nos. [(4) + (5) + (6) + (7) + (8)] - [(2) + (3)] If closing balance of Creditors is unknown: Item Nos. [(1) + (2) + (3)] - [(4)+ (5) + (6) + (7)] Cash in Hand and at Bank: Prepare the cash book and balance it. Opening Stock: Sometime opening stock is unknown, if it is unknown it can be calculated from sales. In such a case from sales fin out the cost price of the goods sold. Add in the cost of goods sold the closing stock. Subtract from the result purchases during the year. Define and explain single entry system of bookkeeping. What are limitations of single entry system of accounting It is difficult to define single entry system because, in fact, there exists no system like single entry system. Broadly speaking, it is a defective double entry system. Any system that falls short of complete double entry method is called single entry system. Under this method, sometimes both the aspects of transactions are recorded, sometimes only one aspect is recorded or sometime no aspects of transactions is recorded in the books. As a general rule under the single entry practice only the personal aspects of the transactions are recorded and the nominal and real aspects are omitted altogether. As the name implies, the single entry system does not take into account the double affect of every transaction. The ledger contains only the personal accounts of debtors and creditors, all impersonal accounts such as purchases, sales, wages, carriage, rent etc., are not recorded. Thus the system does not consider the two fold aspect of every transaction. In short single entry system may be called a mix of double entry, single entry and no entry Single entry system may be defined as a system which does not strictly conform to the double entry system of bookkeeping. Under this system what is found in practice is combination of single entry, double entry and no entry. Defects/Limitations/Disadvantages of Single Entry System: The limitations or defects or disadvantages of single entry system may be summed up as follows: Under this system only partial and incomplete record is maintained because two fold aspects of transactions are generally ignored. As the two fold aspects of every transaction are not recorded, a trial balance cannot be drawn up to test the arithmetical accuracy of the records. A nominal accounts are not maintained, a profit and loss account cannot be prepared for want of information regarding the various income and expenditures. As no real accounts are maintained the preparation of balance sheet is not possible Statement of Affairs: Learning Objectives: Define and explain statement of affairs. What is the purpose of preparing a statement of affairs? Prepare the format of statement of affairs. Definition and Explanation: Correct final accounts of a business can be prepared in the records are maintained under the double entry system . How every where the record is incomplete, and it is not all possible to complete it by double entry, in such cases the final accounts can be only approximately prepared by means of a statement of affairs. In appearance the statement of affairs is similar to a balance sheet. For this purpose, two comparative statement of affairs are prepared - one at the commencement of the year and other at the end of the year. The excess of the assets over the liabilities as shown by the statement will represent the capital of the firm. If capital at the end shows an increase as compared to the amount of capital at the start the difference will represent profit and if the capital at the end is less than the capital at the beginning the difference will be loss. In this calculation, however, two more factors should be taken into account. Where fresh capital has been introduced into the business during the account period, the closing capital may be taken to have been increased to that extent. To arrive at the true profit or loss, therefore, the amount of fresh capital introduced is deducted from the closing assets as determined under such circumstances. Where drawings have been made by the proprietor during the accounting period, such drawings reduce the amount of capital at the close. In order to calculate net profit, it is necessary, therefore, that amount withdrawal should be added to the capital at the close before deducting from it the capital at the beginning. Formula: Formula for determining the net profit is put as follows: (Capital at the end + Drawings - Additional capital introduced) - Capital in the beginning Difference Between Statement of Affairs and Balance Sheet: Learning Objectives: What is the difference between statement of affairs and balance sheet? As real or property accounts are not maintained and also because a capital account does not exist under the single entry system, a balance sheet cannot be prepares in the same way as is done under the double entry system. However, in order to have an idea about the financial position on a particular date information concerning the available assets and liabilities is gathered and a statement is prepared setting in it assets and liabilities on the date; this statement is called a statement of affairs. The assets and liabilities are set out in the form of a balance sheet. The excess of assets over liabilities is shown as capital. Balance sheet and statement of affairs may be distinguished as follows: Statement of Affairs Balance Sheet (1) It is a statement of assets and liabilities (including capital) prepared under the single entry system (1) It is statement of assets and liabilities (including capital) prepared under the double entry system. (2) It is prepared partly from a trader's books, partly from other sources of information and sometimes from memory (2) It is prepared with data available from the books of accounts only. (3) It is compiled from an incomplete books and information, the accuracy of which cannot be relied upon (3) It is prepared from a set of books kept according to the double entry system, the arithmetical accuracy of which can be proved.